Proposed acquisition of Lonmin - 14 December 2017 - The Vault
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Proposed
acquisition of
Lonmin
14 December 2017
Disclaimer
Forward looking Statements
This Presentation contains forward-looking statements within the meaning of the “safe harbour” provisions of the United States
Private Securities Litigation Reform Act of 1995. These forward-looking statements, including, among others, those relating to
Sibanye Gold Limited trading as Sibanye-Stillwater (“Sibanye-Stillwater”)’s and Lonmin Plc (“Lonmin”)’s financial positions, business
strategies, plans and objectives of management for future operations, are necessarily estimates reflecting the best judgment of the
senior management and directors of Sibanye-Stillwater and Lonmin. All statements other than statements of historical facts
included in this Presentation may be forward-looking statements. Forward-looking statements also often use words such as
“anticipate”, “believe”, “intend”, “estimate”, “expect” and words of similar meaning. By their nature, forward-looking statements
involve risk and uncertainty because they relate to future events and circumstances and should be considered in light of various
important factors, including those set forth in this disclaimer. Readers are cautioned not to place undue reliance on such
statements. The important factors that could cause Sibanye-Stillwater’s and Lonmin’s actual results, performance or achievements
to differ materially from those in the forward-looking statements include, among others, economic, business, political and social
conditions in the United Kingdom, South Africa, Zimbabwe and elsewhere; changes in assumptions underlying Sibanye-Stillwater’s
and Lonmin’s estimation of their current mineral reserves and resources; the ability to achieve potential synergies from the Offer; the
ability to achieve anticipated efficiencies and other cost savings in connection with past and future acquisitions, as well as at
existing operations; the success of Sibanye-Stillwater’s and Lonmin’s business strategy, exploration and development activities; the
ability of Sibanye-Stillwater and Lonmin to comply with requirements that they operate in a sustainable manner; changes in the
market price of gold, PGMs and/or uranium; the occurrence of hazards associated with underground and surface gold, PGMs and
uranium mining; the occurrence of labour disruptions and industrial action; the availability, terms and deployment of capital or
credit; changes in relevant government regulations, particularly environmental, tax, health and safety regulations and new
legislation affecting water, mining, mineral rights and business ownership, including any interpretations thereof which may be
subject to dispute; the outcome and consequence of any potential or pending litigation or regulatory proceedings or other
environmental, health and safety issues; power disruptions, constraints and cost increases; supply chain shortages and increases in
the price of production inputs; fluctuations in exchange rates, currency devaluations, inflation and other macro-economic
monetary policies; the occurrence of temporary stoppages of mines for safety incidents and unplanned maintenance; their ability
to hire and retain senior management or sufficient technically skilled employees, as well as their ability to achieve sufficient
representation of historically disadvantaged South Africans’ in management positions; failure of information technology and
communications systems; the adequacy of insurance coverage; any social unrest, sickness or natural or man-made disaster at
informal settlements in the vicinity of some of Sibanye-Stillwater’s operations; and the impact of HIV, tuberculosis and other
contagious diseases. These forward-looking statements speak only as of the date of this Presentation. Sibanye-Stillwater and Lonmin
expressly disclaim any obligation or undertaking to update or revise any forward-looking statement (except to the extent legally
required).
2
www.sibanyestillwater.com
Contents
1. Introduction
2. Transaction overview
3. Transaction rationale
a. Lonmin transaction rationale
b. Sibanye-Stillwater transaction rationale
4. Conclusion
5. Appendix
3
www.sibanyestillwater.com
Introduction
4
Transaction is aligned with our vision…
SUPERIOR VALUE CREATION
FOR ALL OUR STAKEHOLDERS
Through mining our multi -commodity
resources in a safe and healthy
environment
Sibanye-Stillwater cares 5
www.sibanyestillwater.com
…and aligned with our three-year strategic goal
Maintaining
Deleveraging
our focus on
our balance
operational
sheet
excellence
Improving
Strengthen our position as a our position
Addressing
on the
leading international precious global
our SA
discount
metals mining company by: industry cost
curves
Pursuing value
accretive Consistently
growth based delivering on
on our market
strengthened commitments
equity rating
Lonmin acquisition consistent with our strategy 6
www.sibanyestillwater.com
A logical fourth PGM step
• First entry into the SA PGM sector – April 2016
• Lean, well run company
Aquarius • Operational performance has continued at record levels
since acquisition
• Effective from November 2016
• Smart transaction structure aligned with expectations of platinum
market outlook
Rustenburg • Significant synergies with Aquarius and the Group
• Annual synergies of R1bn by 2018, well ahead of previous target
of R800m over a 3-4 year period
• Tier one US PGM producer acquired in May 2017
• High grade, low cost assets with Blitz, a world class growth
project
Stillwater • Provides geographic, commodity and currency diversification
• 78% palladium content provides upside to robust
palladium market
• Attractive acquisition price at low point in platinum price cycle
• Combination with Sibanye-Stillwater SA PGM assets – significant
potential synergies
Lonmin • Completes Sibanye-Stillwater’s mine-to-market strategy in SA and
secures entire PGM value chain
• Sizeable Resources provide long-term optionality
A unique, leading precious metals mining company offering scale and sustainability 7
www.sibanyestillwater.com
A leading precious metals mining company
Sibanye-Stillwater global PGM ranking Sibanye-Stillwater global gold ranking
2016A platinum 2016A palladium 2016A gold and gold
production (moz) production (moz) equivalents
production (moz)
Barrick 5.5
Amplats¹ 2.0 Norilsk² 2.6
Newmont 5.2
Sibanye-Stillwater Sibanye-Stillwater Sibanye-Stillwater
3,4
1.6 1.3 3.8
(post-transaction)³ (post-transaction) ³ (post-transaction)
AngloGold 3.6
Impala 1.4 Amplats¹ 1.3
Gold Corp 2.9
Lonmin 0.7 Impala 0.9 Kinross 2.8
Newcrest 2.4
Norilsk² 0.6 Lonmin 0.3
Gold Fields 2.1
Northam 0.3 Northam 0.1 Polyus 2.0
Agnico-Eagle 1.7
RBPlats 0.2 RBPlats 0.1
Sibanye-Stillwater 1.5
Source: Company filings Lonmin’s contribution to Sibanye-Stillwater
Note:
1. Exclusive of Rustenburg Mine
2. Includes PGM by-products only
3. Rustenburg + Aquarius + Stillwater + Lonmin. Rustenburg, Kroondal, Platinum Mile and Mimosa as of FY16, per public disclosure. Figures include Blitz at full ramp-up
4. Sibanye –Stillwater gold equivalents included
Positioned globally as a leading precious metals producer 8
www.sibanyestillwater.com
Manageable liquidity position
• Our priority is the deleveraging of our balance sheet
– Current net debt/EBITDA of 2.6x targeting 1.0x in the medium term
– All share consideration for Lonmin will not add debt to the balance sheet
• Anticipated that Lonmin will settle their current debt facilities prior to closing
with own cash
Pro-Forma¹ Liquidity and Debt Maturity Ladder - US$ millions
$ 600
$ 400
$ 480 $ 537
$ 200 $ 435 $ 444
$ 175
$0
($ 305)
($ 200)
($ 400) ($ 225)
($ 600)
($ 800)
2017 2018 2019 2020 2021 2022 2023 2024 2025
Cash (incl GBF) Available Facilities USD RCF ($350m) ZAR RCF (R6bn)
2022 Bonds ($500m) 2023 Convertible ($450m) 2025 Bonds ($550m)
Note: Sibanye-Stillwater figures as at 30 June 2017
¹ Pro-forma assumes Lonmin is acquired at a net debt neutral position
Primary focus on deleveraging – conserving cash 9
www.sibanyestillwater.com
Transaction overview
10Transaction overview
• Sibanye-Stillwater to acquire 100%
of Lonmin
1. Northam
• All share consideration: 2. Anglo America
2 1 Platinum
– Share exchange ratio of 0.967
3. Siyanda Resources
– At closing prices on 13 December 3 4. Sedibelo Platinum
2017 this equates to a 35% premium 5. Wesizwe Platinum
– Based on the 30 day VWAP of 4 6. Royal Bafokeng
Sibanye-Stillwater this values each 2 Platinum
7. Impala Platinum
Lonmin share at 100p or a 41%
8. Eastern Platinum
premium to the Lonmin 30 day VWAP, 6 Sibanye-Stillwater
equates to aggregate value of 5
Lonmin
R5.15 billion (GBP 285 million) 6
6
– Lonmin Shareholders will receive Western Bushveld
approximately 11.3 % of pro-forma Joint Venture 7
10
market cap
7 1
8
• Subject to various conditions
precedent Pandora Joint
Venture
• No break or cancellation fee
• Should Sibanye-Stillwater
shareholders not approve the
transaction, agreement in principle
to discuss asset acquisition
A logical value accretive transaction 11
www.sibanyestillwater.comKey conditions precedent
Transaction subject to, inter-alia, the following conditions:
• Lonmin shareholder approval following all regulatory approvals (>75% by value
and majority in number of shares present and voting)
• Certain competition and regulatory approvals in relevant jurisdictions 1
• No cancellation of any prospecting or mining right held by Lonmin, pursuant to
Section 47 of the MPRDA having a material adverse effect 2
• Sibanye-Stillwater shareholder approval following all regulatory approvals
(>50% of shares present and voting)
Note:
1. Including South Africa, the United Kingdom or possibly the European Union
2. Subject to Panel confirmation
A smart transaction structure 12
www.sibanyestillwater.comIndicative milestones to closing
Announcement of transaction – 14 December, 2017
Lonmin publish annual financial statements – January, 2018
Competition clearance obtained – H2 2018
Lonmin shareholder approval and court meeting – H2 2018
Sibanye-Stillwater shareholder approval – H2 2018
The approval of the scheme by the court
Target
completion in
H2 2018
A smart transaction structure 13
www.sibanyestillwater.comTransaction rationale
14Lonmin – transaction rationale
Bongekile Ngqulunga
Lonmin Head of Precious 15
Metals Refinery
www.sibanyestillwater.comThe combination of Sibanye-Stillwater and Lonmin creates a leading
South African mine-to-market company
The combination allows Lonmin shareholders to participate in growth and value creation opportunities of the
enlarged Sibanye Group
SA gold mining operations South African Platinum
mining operations
SA and Zimbabwean
platinum mining operations
Smelting
PGM operations and
projects in the Americas
Base metal refinery
US smelter facilities
US base metal refinery Precious metal refinery
Lonmin’s position in light of the macro-economic headwinds:
Lonmin Group currently maintains a net cash position
Persistently low PGM pricing environment and inflationary cost pressures of operating in the South African PGM
industry, have been further exacerbated by internal factors including operational, social and labour issues
Putting ageing Generation One shafts on care and maintenance enables operational costs to be contained
As a result, in excess of 12,000 jobs at Lonmin are potentially at risk over the next three years
Lonmin continuously engages with its workforce to manage and mitigate the risk of job losses
16
www.sibanyestillwater.comLonmin CEO message
“ We believe that this Offer is in the best interests of Lonmin, Lonmin
Shareholders and all other stakeholders. Lonmin has an enviable mine to
market business with great mining assets, projects and process
technology and resilient workforce. Despite this, Lonmin continues to be
hamstrung by liquidity concerns. The combination with Sibanye-Stillwater
therefore provides a stronger platform for Lonmin shareholders and other
stakeholders to benefit from the long-term upside potential of an
enlarged and geographically diversified Sibanye-Stillwater group. We
therefore unanimously recommend this Offer to our shareholders.” Ben
Magara – Chief Executive Officer
17
www.sibanyestillwater.comSibanye-Stillwater
rationale
18Sibanye-Stillwater rationale
• Sibanye-Stillwater anticipates that the transaction is NAV accretive on closing and
earnings and cash flow accretive on a per share basis from 2021, once synergies begin to
be realised in full and once related one-off costs have been incurred
• Detailed due diligence confirms significant synergies between Sibanye-Stillwater and
Lonmin’s contiguous PGM assets
• Acquiring downstream processing business with a replacement value significantly higher
than acquisition cost
• Enhanced scale facilitates greater operational flexibility and more effective allocation of
capital
• Sizeable PGM Resources with potential upside from advanced brownfield projects and
greenfield project pipeline
Pro forma Mineral Resources
3%
4E Moz 4% Pro forma Mineral Reserves
4E Moz
Kroondal
27%
1
29% Kroondal
Rustenburg
Rustenburg
Total Mimosa Total
307.1moz 58% 54.9moz Mimosa
59% Projects
2% Tailings
Tailings 3%
8%
6% Lonmin
1% Lonmin
Note:
1. Mineral Reserves and resources 4E attributable. Source: Companies’ 2016 Reserve and Resources statements
Value accretive transaction with upside 19
www.sibanyestillwater.comAttractive acquisition at low point in price cycle
Historic SA PGM transactions
20 Lonmin: Afriore
Mvela: Booysendal &
Northam
15
Deal value (US$/Resource oz)
RBPlats: Maseve
Platmin: Sedibelo West
Implats: Waterberg
10 Nkwe: Garatau/Tubatse
Jubilee: Tjate Project
Sibanye-Stillwater:
Aquarius
Anglo: Anooraq
Zambezi: Northam
Lonmin: Pandora
5 Sibanye-Stillwater:
Rustenburg
Northam: Tumela
Sibanye-Stillwater:
Hebei: Eastplats Lonmin
Northam: Eland Anooraq: Bokoni
0
0 100 200 300 400 500 600 700
Deal value (US$m)
Source: Various companies’ disclosures
Note: Bubble size represents PGM Resources
A sizeable resource base at a compelling price 20
www.sibanyestillwater.comMarikana mines overview
SC =Shaft Capacity
DWL = Deepest Working Level
Source: Lonmin 2017 Interim Results Presentation
21
www.sibanyestillwater.comLonmin production and capex profile
• Significant capital investment required to maintain flat production profile
– Substantial capital hump
• Decommissioning of generation one shafts, which are coming to the end of
their lives, results in an expected retrenchment of approximately 12 600
employees over the next 3 years
Lonmin LoM - 4E PGM ounces in concentrate Lonmin LoM - Total capital by category (real terms)
1 200 000 4 000
1 000 000 3 500
3 000
4E PGM ounces
800 000
R million
2 500
600 000 2 000
400 000 1 500
1 000
200 000
500
0 0
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
K3 Saffy Rowland E3 Total Mining Capex Total Conc. Capex
4B K4 W1 E1
E2 Hossy Newman BTT Total S&R Capex Total Other Capex
Source: Lonmin’s company information
Note:
1. Numbers include contractors
Challenging financial requirements under current economic conditions 22
www.sibanyestillwater.comSibanye-Stillwater revised operational plan
• Revised mining plan developed after detailed due diligence
• Plan suitable for current economic and market conditions
– “Lower for longer” plan
• Conservative plan not contingent on expenditure of project capital thereby
ensuring affordability
• Generation one shafts to be put on care and maintenance as per Lonmin plan
• Flexibility to delay Mining project capital
– Optionality to significantly extend operating life in a higher PGM price environment
Revised plan - adjusted 4E PGM ounces Revised capital by category compared to Lonmin
in concentrate plan (Real terms)
1 200 000 4 000
3 500
1 000 000
4E PGM ounces
3 000
800 000
R million
2 500
600 000 2 000
1 500
400 000
1 000
200 000
500
0 0
2018 2021 2024 2027 2030 2033 2036 2018 2021 2024 2027 2030 2033 2036
K3 Saffy Rowland E3 4B K4 Mining capex Concentrator capex Smelter and refinery capex
W1 E1 E2 Hossy Newman BTT Other capex New furnace capex Total LoM Capex
Lonmin LoM 4E PGM ounces in concentrate
Source: Lonmin’s company information and due diligence performed by Sibanye-Stillwater
Affordable mining plan with optionality 23
www.sibanyestillwater.comRestructuring • Planned retrenchment of approximately 12 600* employees over the next three years primarily as a result of generation one shafts reaching the end of their reserves • The Sibanye-Stillwater revised business plan could affect a further 890¹ people • The revised Sibanye-Stillwater plan is a base case for viability under current market conditions • Subject to S189 consultations, the possible retrenchments are anticipated to be phased over a three-year period Lonmin plan (before the transaction) As at 30 September* 2017 Actual 2018 2019 2020 Cumulative Total employees 32 512 28 812 23 512 19 912 Head count reduction -3 700 -5 300 -3 600 -12 600 * Numbers quoted include contractors ¹ Exclude additional smelter and refinery personnel required for the additional furnace in the Sibanye-Stillwater plan Revised plan designed to ensure viability of operations 24 www.sibanyestillwater.com
Processing considerations
4E PGM oz by Source
• Ability to treat Rustenburg 2000 000
4E oz in conc / 4E oz produced
1800 000
concentrate in Lonmin 1600 000
processing facilities from 2021 1400 000
1200 000
• Synergy benefit of treating own 1000 000
concentrate through owned
800 000
600 000
facilities 400 000
200 000
• Optimising capacity positively -
impacts processing unit costs
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
Lonmin 4E contained in conc Sibanye-Stillwater 4E Produced
• Allows for better mine planning
flexibility enhancing profitable Concentrate by Source
mining mix 500 000 500 000
• Potential to build DC ARC Tonnes of Concentrate
400 000 400 000
furnace (approximate capital
300 000 300 000
cost of R1bn) to cater for total
Rustenburg concentrate 200 000 200 000
– Other potential solutions also 100 000 100 000
being investigated
- -
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
Sibanye-Stillwater Concentrate tonnes Lonmin Concentrate produced tonnes
Average processing synergies from 2021 to 2032 of approximately R550m per annum 25
www.sibanyestillwater.comLong-term benefits of mine-to-market model in SA
• One of only 3 fully integrated South
African PGM producers
• Scale allows for optimisation of
processing facilities, reducing unit
costs
• Reduced processing costs of
Rustenburg production from 2021
Creating an integrated long life mining and processing complex on the Western Limb 26
www.sibanyestillwater.comPGM all-in cost curves 2016 - 2017
20 000 Jun-16 all-in costs1 chart, by mine (R/6E ounce)2
18 000
Avg. basket price R12,699/ounce (6E)
16 000 Avg. all-in costs = R12,277/ounce (6E)
14 000
Cost R/Oz
12 000
10 000
8 000
6 000
4 000
2 000
0
Amandelbult
Two rivers
Rustenburg
East Boulder
Mototolo
Stillwater
Zimplats
Union
Lonmin
Marula
Impala
Modikwa
Mimosa
Mogalakwena
Boschkoppie
Zondereinde
Kroondal
Unki
Booysendal
20 000
Jun-17 all-in costs1 chart, by mine (R/6E ounce)2
Avg. basket price R12,128/ounce (6E)
18 000 Avg. all-in costs = R12,589/ounce (6E)
16 000
Cost R/Oz
14 000
12 000
10 000
8 000
6 000
4 000
2 000
0
Amandelbult
Two rivers
Rustenburg
East Boulder
Stillwater
Mototolo
Zimplats
Union
Lonmin
Mogalakwena
Impala
Modikwa
Mimosa
Marula
Boschkoppie
Zondereinde
Kroondal
Unki
Booysendal
Sibanye-Stillwater mines Lonmin Other PGM mines
Source: Company reports, Citi Research,
Note:
1. Includes cash costs, all capex exploration, corporate costs, cash taxes and other operating costs
2. Excluding base metal credits
3. Mines acquired by Sibanye-Stillwater in the Aquarius acquisition include Kroondal and Mimosa
Clear cost benefits realised at Kroondal and Rustenburg operations from integration with Sibanye-Stillwater 27
www.sibanyestillwater.comMaterial synergies with Lonmin operations
Pre-tax synergies of approx. R1.5bn per annum by 2021
Quantified synergies 1 Incremental synergy potential 2
• Overhead costs (R730m per annum by • Ability to mine through existing mine
2021) boundaries
– Corporate office rationalisation (closing • Optimal use of surface infrastructure
the London office and delisting)
• Optimising the mining mix
– Regional shared services
• Prioritisation of projects and new
– Operational (mining) services growth capital
– One-off R80m cost required to achieve • Capital reorganisation in line with new
these synergies
consolidated regional plan
• Processing synergies
– Differential cost benefits of R780m by
2021 and an average of approximately
R550 per annum from 2021
– Approximately R1bn of capex required
for the purchase of a new furnace
Note:
1. For overhead synergies, total savings anticipated when fully implemented in FY21; varies per toll agreement production
throughput for processing synergies with average calculated between 2021 and 2032
2. Synergies which are unquantifiable at this point in time
Average annual pre–tax synergies of approximately R1.3bn from 2021 – ensuring operational viability 28
www.sibanyestillwater.comBroader stakeholder benefits • Potential to retain more jobs in the longer term • Continued delivery of benefits for employees, communities and other stakeholders • Greater stability for the Rustenburg regional economy • Positive for the South African fiscus All stakeholders to benefit over the longer term 29 www.sibanyestillwater.com
Conclusion
30A unique value proposition
Biggest producer A primary
A unique product mix of An international A leading PGM
of gold from producer of
gold and PGM’s footprint recycler
South Africa palladium
Gold
PGM
Copper
Proudly South
Delivery of superior The purpose of
Long gold PGM African while
value to all stakeholders Sustainability our mining is to
mine life competing on a
drives strategy improve lives
global stage
31
www.sibanyestillwater.comContacts
James Wellsted/ Henrika Ninham
ir@sibanyestillwater.com
Tel:+27(0)83 453 4014/ +27(0)72 448 5910
Website: www.sibanyestillwater.com
32Appendix
33Transaction summary
• Under the terms of the Offer, each Lonmin shareholder will be entitled to receive:
• for each Lonmin Share 0.967 New Sibanye-Stillwater Shares
• Based on the 30 trading day volume weighted average price of R18.67 of Sibanye-Stillwater
shares for the period ended 13 December 2017 (being the last business day prior to the date
of this announcement)*, the offer values each Lonmin share at 100.0 pence and values the
existing issued ordinary share capital of Lonmin at approximately £285 million and represents
a premium of approximately:
• 57 per cent. to the closing price per Lonmin share of 63.8 pence on 13 December 2017;
and
• 41 per cent. to the 30 trading day volume weighted average price per Lonmin share for
Consideration
the period ended 13 December 2017 of 71.1 pence.
• The exchange ratio of the offer has been determined using the 30 trading day volume
weighted average price for Sibanye-Stillwater to smooth out the daily movements.
• Based on the closing price of R16.11 of a Sibanye-Stillwater share on 13 December 2017*, the
offer values each Lonmin share at 86.3 pence and represents a premium of approximately 35
per cent. to the closing price per Lonmin share of 63.8 pence on 13 December 2017.
• Following completion of the acquisition, Lonmin shareholders will hold approximately 11.3 per
cent. of the enlarged Sibanye-Stillwater group
Source: Factset as of 13 December 2017
* The exchange rate on that date being R18.056:£1
34
www.sibanyestillwater.comTransaction summary (continued)
• The Lonmin Directors intend unanimously to recommend that Lonmin shareholders vote in
Directors’ favour of the scheme at the court meeting and the resolutions to be proposed at the Lonmin
recommendations general meeting
and irrevocable • The Lonmin Directors have irrevocably undertaken to Sibanye-Stillwater to do in respect of
undertakings their own beneficial shareholdings in Lonmin representing approximately 0.026698 per cent.
of the existing issued ordinary share capital of Lonmin
• Sibanye-Stillwater shareholder approval in relation to the issue of the new Sibanye-Stillwater
shares to Lonmin shareholders in accordance with the Sibanye-Stillwater Memorandum of
Incorporation supported by more than 50 percent of the voting rights exercised on the
ordinary resolution at the Sibanye-Stillwater shareholder meeting
• Lonmin shareholder approval
Shareholder
• a majority in number of the Lonmin shareholders who are present and vote (and are
approval
entitled to vote), whether in person or by proxy, at the court meeting and who represent
75 per cent. in value of the Lonmin Shares voted by those Lonmin shareholders
• the resolutions required to implement the Scheme being duly passed by the requisite
majority or majorities of votes cast at the Lonmin general meeting
Required key • Certain competition and regulatory approvals (including in South Africa and the United
regulatory Kingdom (or the European Union, in case a referral is made to the European Commission
approvals* pursuant to Article 22 of the Council Regulation (EC) 139/2004) being obtained
• There is no cancellation of any prospecting right or mining right held by Lonmin pursuant to
Section 47 of the MPRDA where such cancellation is material, and if such a cancellation has
occurred it has not been: (i) withdrawn, lifted or revoked in writing by the Minister; or (ii) set
License condition
aside, nullified or otherwise suspended by the order of a court of competent jurisdiction,
within 15 business days of such cancellation (or, if earlier, by the date scheduled for the court
hearing to approve the scheme).
*Refer to www.sibanyestillwater.com/investors/transactions/lonmin for announcement with full details on the required regulatory and other approvals
35
www.sibanyestillwater.comOverview of Lonmin PGM operations
Mineral Resources 4E Moz 1 Mineral Reserves 4E Moz 1
3% 1%
7% 3% 2%
Marikana
9% Akanani
Marikana
Limpopo
Total Total
Pandora JV
180.6 Moz Pandora JV 31.7 Moz
16%
Tailings Dams
Limpopo
64%
Loskop JV 95%
Western Limb Assets: Eastern Limb Assets: Northern Limb Assets:
• Marikana Mine • Limpopo & Loskop • Akanani Project
• Pandora Mine
Refined 6E PGMS 2
0.03
0.12 Platinum
Palladium
0.08
Gold
0.01 Total
1.32 Moz Rhodium
Ruthenium
0.24 Iridium
0.52
Note:
1. Mineral Reserves and resources 4E attributable. Source: 2016 Reserve and Resources statement
2. Total refined PGMS 2017 - Fourth Quarter and Full Year 2017 Production Report and Business Update
36
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